EFFECTS OF FUEL PRICE INCREASE ON THE NUMBER OF COMMUTERS IN

DMMACSP SEAFARERS

The Researchers:

Alamis, Remy

Capilitan, Lloyd James

Inocencio, Lerwin

Maligro, Janrex Paul

Pacquiao, Giancarlo

Panisa, Ric Juster

Rojas, Jersam John

Teofilo, Michael Avan

November 2022
 Chapter 1

INTRODUCTION

Rationale

Higher petrol prices make leaving campus more expensive for students who live

on campus or in the adjacent residences. Driving to class might be expensive for

students who have a long commute to school. According to the American Automobile

Association, the average price for regular unleaded gas in the Evansville area has

increased to $4.17 from $2.82 a year ago because of recent global events, including

sanctions placed on Russian oil. Due to rising petrol prices, commuter students are

under more stress and financial strain. With commuter students making up 76.9% of the

student body, Political science major Savannah Mathews, a sophomore, travels 30

minutes by car to get to campus. The highest gas price average in Indiana before the

pandemic was $4.25 in 2011. On March 11, 2022, gas prices in Evansville peaked at

$4.33 per gallon. Students are unable to visit campus or partake in university activities

due to the record-breaking gas prices. Some students' ability to commute to campus

jobs or field practice placements is being impacted by the costs. With an average price

of $3.80 per gallon, Henderson, Ky, located a half-hour away, has the cheapest gas in a

15-mile radius. (Sydney Lawson, Feature Editor, April 7, 2022)

The diminishing coronavirus pandemic, record inflation, and the most recent

crisis in Ukraine are just a few of the things driving up the price of gasoline. When petrol

prices last experienced a spike like this in the United States, it was during the 2008
financial crisis, when, after accounting for inflation, the national average for gas was

around $5.37 per gallon. This year, oil providers have rushed to supply the increased

demand brought on by the pandemic for a recovering economy. However, prices did not

spike until American lawmakers imposed worldwide penalties on Russian shipments,

coinciding with concerns over the world's supply. In December, approximately eight

million barrels of oil and other petroleum products were exported from Russia, one of

the top oil producers in the world. Russia provides less than 10% of the oil that the

United States imports, compared to up to 60% for Europe and 20% for China. No matter

what market it is intended for, as oil is valued on international commodity markets,

restrictions on Russian oil have an impact on pricing worldwide. With a new state

average of $5.989 this week, prices in California have remained particularly high even

as national costs have started to decline. Due to the state-mandated cleaner fuel blend,

prices are 10 cents higher in California by default. However, the New York Times

reports that delays in the state's supply chain have caused bulk fuel costs to be up to 80

to 90 cents per gallon higher than usual.

As a result, commuter students like West have chosen to cut back on the "non-

essentials" in order to reduce their costs where they can. West claimed that switching to

a motorcycle has been successful and that he now achieves 45 to 60 mpg while riding,

and even 110 mpg under some conditions. This is in contrast to the national average

MPG for cars in 2020, which is 25.7. West also disclosed that he will make fewer weekly

excursions to campus. (Benjamin Papp, Commuter students navigate gas prices, April

11, 2022)
 The goal of this study is to evaluate how poverty in the Philippines Manila is

affected by rising rice and fuel costs. Data at the home level was used to assess

differences in potential effects between various household groupings. The findings of

this study confirm that different household groups are affected differently by rising rice

and fuel prices depending on their employment sector, level of urbanization, income

bracket, and location. In truth, there are victims and winners in the most recent price

increases for rice and petrol. Households have devised a range of coping strategies in

reaction to price increases, some of which are detrimental and unproductive in the

medium to long run. The Philippine government has additionally responded by putting in

place initiatives to lessen the effects of price increases. We advise gathering information

on every household in your neighborhood at the household level. B. Through the use of

surrogate mean testing methods, local governments may establish community-based

monitoring systems (CBMS) and use them to determine which beneficiaries are eligible.

This ensures that the poor benefit from these programs and lessens the amount of

program benefits that leak to them. (Alellie B Sobrevinas, Jeremy de Jesus, Celia M

Reyes, Joel E Bancolita, PIDS Discussion Paper Series, 2009)

The increase in fuel prices, according to the Land Transportation Franchising and

Regulatory Board in the Davao Region (LTFRB-Davao), is one of the reasons they are

commencing to raise fares on October 3, 2022.During a virtual press conference on

September 30, 2022, Legal Officer of LTFRB, Atty. Ernest Benz Davila stated, "In

rendering the said decision, the board is mindful of the present economic situation

brought about by a variety of processes which are both domestic and international."
 He added that additional factors contributing to the fare increase include the

public utility vehicle (PUV) and public utility jeepney (PUJ) operators' rising operational

expenses. The National Economic and Development Authority and LTFRB studies were

also taken into consideration for raising the fare. They also considered commuter

comments when making decisions. According to LTFRB, the new modified base charge

for traditional public utility jeepneys (TPUJ) is now P12 and an extra P1.80 for each

additional kilometer after P11. The base fare of the modern public utility jeepneys

(MPUJ) was changed from P13 to P14, plus an additional P2.20 per kilometer. LTFRB

previously stated that the base fare will increase by 9%, while the TPUJ fare would

increase by 20% per kilometer. The MPUJ will also have an eight percent base fee hike

and a 22 percent rise per kilometer, according to LTFRB.

In contrast, the base ticket for the normal city PUB has increased from P11 to

P13 with an extra P2.25 per kilometer, an 18% increase from the prior base fare. While

the amended basic cost for the air-conditioned city PUB has increased to P15, a 15%

increase, and has a P2.65 surcharge for additional kilometers, it is now P15.The base

fare was raised by the usual provincial PUB to P11 from P9 and an additional P1.9 per

kilometer. The base fare for taxi services has increased from P40 to P45, according to

the LTRB. KSD. (Krizzy S. Daugdaug, Sunstar Davao, Fare hike due to fuel price

increase, October 01, 2022)

Background of the Study

Retail gasoline prices are mainly affected by crude oil prices and the level of

gasoline supply relative to gasoline demand. Strong and increasing demand for

gasoline and other petroleum products in the United States and the rest of the world can

place intense pressure on available supplies. Gasoline prices tend to increase when the

available supply of gasoline decreases relative to real or expected gasoline demand or

consumption. Gasoline prices can change rapidly if something disrupts crude oil

supplies, refinery operations, or gasoline pipeline deliveries. Even when crude oil prices

are stable, gasoline prices fluctuate because of seasonal changes in demand and in

gasoline specifications.

World crude oil prices reached record levels in 2008 as a result of high worldwide

oil demand relative to supply. Significant growth in demand in China, the Middle East,

and Latin America, combined with market uncertainty in world supply, contributed to the

run-up in oil prices and, in turn, to record-high gasoline prices in the United States.

Historically, retail gasoline prices tend to gradually rise in the spring and peak in late

summer when people drive more frequently. Gasoline prices are generally lower in

winter months. Gasoline specifications and formulations also change seasonally.

Environmental regulations require that gasoline sold in the summer be less prone to

evaporate during warm weather. This requirement means that refiners must replace

cheaper but more evaporative gasoline components with less evaporative but more

expensive components. In 2000 through 2020, the average monthly price of U.S. retail

regular-grade gasoline in August was about 32 cents per gallon higher than the average

price in January.
Objectives of the Study

This study aims to:

1. Know the minimum fare every month before and after the price increase;

2. Determine the percentage of DMMAcsp commuters during price increase;

3. Examine factors that affect the DMMAcsp commuters.

Statement of the Problem

This study aims to know the effects of fuel price increase from the commuters of

DMMAcsp seafarers. Specifically, this study answers the following questions:

1. What are the exact minimum fare in every month when fuel will increase?

2. What is the percentage of DMMAcsp commuters during price increase?

3. What are the factors that affect the DMMAcsp commuters?

Hypotheses

Alternative Hypothesis

1. It can growth from 10 pesos minimum fare to 13 pesos every month

depends on fuel increment;

 2. Statistically, the percentage of DMMAcsp commuters will decrease from

76% to 56%;

3. DMMAcsp commuters will force to have any vehicle for transportation

going to school.

Null Hypothesis

1. The exact minimum fare cannot determine;

2. The percentage of DMMAcsp commuters cannot determine;

3. The factors that affect the DMMAcsp commuters cannot determine.

Significance of the Study

This study aims to identify the effects of fuel increasing on commuters. This

ameliorate study will may help to know what are the factors that affect the commuters,

when fuel increase especially in DMMAcsp commuters. In addition, this study focuses

on the factors when the price of fuel increases.

Scope and Delimitation of the Study

This study focuses on knowing the effects of fuel price increase on DMMAcsp

commuters. The researchers will be utilizing survey-method as a tool to get information.

The study will be conducted at DMMA College of Southern Philippines.